Agmt15 Melissa Stevenson Diaz Employment Agreement

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B. Subject to Section 21 of the City Charter, Employee serves at the pleasure of the City Council and nothing herein shall prevent, limit, or otherwise interfere with the right of City to terminate the services of Employee with or without cause with thirty (30) days written notice to Employee. C. If Employee is terminated by the City Council while still willing and able to perform the duties of City Manager, the City agrees to pay Employee nine (9) months of Severance Pay, as limited by California Government Code Sections 53260 and 53261 . D. For the purpose of this Agreement, Severance Pay shall include monthly salary and 401 (a) contributions. Severance Pay shall be paid in a lump sum payment to Employee. In addition, Severance Pay shall include continued Health Benefits. Health Benefits means health, dental, and vision benefits. Health Benefits shall continue a maximum of nine (9) months or until the employee finds other employment, whichever occurs first. Health Benefits shall be provided Employee to the same extent and at the same cost to Employee in effect on the Employee's termination date from City employment. For the purposes of this Agreement, contemporaneously with the delivery of the Severance Pay set forth herein, Employee agrees to execute and deliver to City a release agreement approved by City and approved as to form by the City Attorney waiving and releasing City and its officials and employees from any and all claims that Employee may have against City and its officials and employees acknowledging that any such payments under this provision release City from any further obligations under this agreement. E. Alternatively and in lieu of a lump sum Severance Pay as described in Section 4D, Employee may elect in writing to receive nine (9) months' notice of the City Council's intent to terminate Employee's employment relationship with the City. In this case, City shall retain Employee in an employment relationship with City in a capacity to be mutually agreed upon for the entire period of nine months. During the nine (9) month period of employment, Employee shall receive the same salary and benefits as in Section 4D of this Agreement payable in installments at the same time as other City executive management employees are paid. At the time the parties agree upon the capacity in which Employee will be employed, the parties may discuss and agree upon whether other benefits may be continued and/or are otherwise required by law and/or to the extent such benefits are compliant with California Government Code Section 53260 and 53261 . Prior to commencing employment with City in a newly defined capacity as set forth herein, Employee shall execute and deliver to City a release agreement approved by City and approved as to form by the City Attorney waiving and releasing City and City officials and employees from any and all claims that Employee may have against City and its officers and employees and acknowledging that payments under this provision release City from any further obligations under this Agreement. F. This Agreement does not provide for a specific term of service and limits Severance Pay to nine (9) months. In an abundance of caution, in the event a term is inferred by a Court or is later specified and Severance Pay or other cash settlement is proposed to exceed the nine (9) month limit agreed herein, this Agreement provides as required by the California Government Code Sections 53260 and 53261 , the following: If for any ATTY/AGR/2015/MGR EMPLOYMENT REV: 08-19-15 PT Page 3 of 6 •